Edison Releases Report on Renewables Sector With Focus on Yieldco/Total Return Companies
LONDON, November 26, 2014 /PRNewswire/ --
The recent plethora of yield company spin-offs, as well as similarly missioned "total return" companies, has provided visibility to the sector, validating it further, and offering investors a unique way to play the alternative energy/renewables space in terms of both yield and growth potential. While volatility is likely to be high, overall, we are bullish on the alternative energy/renewables sector, and believe the "total return" concept offers investors the potential for diversification, higher yield and more secured cash flows associated with renewable assets. In this report, we initiate coverage of the alternative energy/renewables sector, and present an overview of climate change, snapshots of the main subsectors and spotlights on select "yieldco/total return" companies in the space.
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We are positive on the overall alternative energy and renewables space based on the following expectations: a) increased demand driven by global population and energy trends; b) increased demand for cleaner energies in order to address climate change impacts and resource shortages; and c) expected transition of companies from niche players to more mainstream energy/utility providers. We have chosen to focus on the "yieldco/total return" companies herein; in shifting discussion away from preoccupation with the labyrinth that is global regulation, these companies have enabled better visibility on underlying asset portfolios, which often generate cash flow secured by long-term power purchase agreements. As a result, they are able to pay dividends now, provide potential for capital appreciation in the future, and have simplified the investment thesis.
For the full 67-page report see:
http://www.edisoninvestmentresearch.com/research/sector/research/#a-13200
All reports published by Edison are available to download free of charge from its website http://www.edisoninvestmentresearch.com.
About Edison: Edison, the investment intelligence firm, is the future of investor interaction with corporates. Our team of over 100 analysts and investment professionals works with leading companies, fund managers and investment banks worldwide to support its capital markets activity. We provide services to more than 400 retained corporate and investor clients from our offices in London, New York, Frankfurt, Sydney and Wellington. Edison is authorised and regulated by the Financial Conduct Authority (http://www.fsa.gov.uk/register/firmBasicDetails.do?sid=181584).
Edison is not an adviser or broker-dealer and does not provide investment advice. Edison's reports are not solicitations to buy or sell any securities.
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SOURCE Edison Investment Research
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